Legislative: Beware of “overly optimistic” use of Banque de France models, warns the governor

Legislative: Beware of "overly optimistic" use of Banque de France models, warns the governor


“If France spent too much and had to borrow even more, it would inspire less confidence in its creditors and the cost of its debt could increase rapidly,” François Villeroy de Galhau said this morning.

Two days before the first round of parliamentary elections, the governor of the Banque de France on Friday warned against using “too optimisticsome parameters of its economic models, a critique addressed implicitly by Jean-Luc Mélenchon’s Nupes.

The Banque de France is completely independent and does not need to have any political comments“, François Villeroy de Galhau said of BFM Business. “But it is my duty to provide some factual clarification“He added, while Jean-Luc Mélenchon, leader of the New People’s, Environmental and Social Union (Nupes), said he had quantified his program.following the example of the Banque de FranceAccording to the rebel leader France, the implementation of the Nupes program would generate € 250 billion in additional public spending and € 267 billion in state revenue each year.

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“We cannot want to keep the euro and reject the rules of the common European game”

The Left Alliance also says it is ready.non-compliance with certain rules»European. “The Banque de France has clearly not quantified and has not even confirmed any candidate programIn the parliamentary elections, François Villeroy de Galhau said on Friday. “It warns in particular against the mechanical and overly optimistic use of so-called fiscal multipliers, taken out of any context.“He continued.”If France spent too much and had to borrow even more, it would create less confidence in its creditors and the cost of its debt could rise rapidly.“The governor insisted and cited the example of Italy in 2018, when the Eurosceptic coalition came to power.

Contrary to what some say, in this case we should not expect the ECB to buy more French public debt“, Assured François Villeroy de Galhau. “Nor could it cancel the French public debt, because it is contrary to the founding treaty on the euro“He specified.” “We cannot both want to keep the euro and reject the rules of European collective playThe governor, who spoke the day after the European Central Bank’s announcement of the start of normalization of its monetary policy, estimated. “You can trust usJean-Luc Mélenchon spoke about economic governance at a presentation of his economic program on Tuesday.regulatedMore than 170 economists signed a forum in support of the Nupes economic program on Thursday in a newspaper on Sunday.


SEE ALSO – Legislative year 2022: “It’s already a successful bet” for Jean-Luc Mélenchon, analyzed by Sophie de Ravinel

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